EPC & Alliances

1. EPC & Alliances

2. EPC & Alliances PONTICELLI REASONS TYPES Interview of Philippe LECOIS Business Development Manager

3. EPC & Alliances PONTICELLI REASONS TYPES Founded in 1921 PONTICELLI Frères is the major French mechanical contractorThanks to a highly skilled manpower, PONTICELLI Frères has been able to develop both in France and abroad its activities in the following fields : Construction works : Piping prefabrication and erection

4. EPC & Alliances PONTICELLI REASONS TYPES Lifting/rigging Equipment erection Machining works

5. EPC & Alliances PONTICELLI REASONS TYPES Maintenance : - Maintenance management (sizing of maintenance activities, technical data-base management, maintenance documentation drafting & management)- Total maintenance contracts (long-term, incentive based, multi-skilled)- Large shutdowns

6. EPC & Alliances PONTICELLI REASONS TYPES Turnover : 500 Millions d' Euros Manpower: 5000

7. PONTICELLI REASONS TYPES A common form of contracting arrangement within the construction industry EPICC: Engineering, Procurement, Installation, Construction and Comissioning ≈ Turn-Key EPC: Engineering, Procurement and Construction

8. EPC & Alliances PONTICELLI REASONS TYPES • Under an EPC contract, the contractor: • Design the installation, • Procure the necessary materials • Construct it, • Carries the project risk for schedule as well as budget in return for a fixed price, called Lump sum or LSTK • Construction risk too great for the contractor • Preference of the owner to do the construction himself Either through own labour or by subcontracting part of the work EP or E+P contract

9. EPC & Alliances PONTICELLI REASONS TYPES Reduction of risks for the contractor Turn a « No » into a « Yes »

10. EPC & Alliances PONTICELLI REASONS TYPES 0 : lessrisks … 4 : more risks 0<TOTAL<14 comfort zone 15<TOTAL<28 risky zone Expectations of a decrease in margin

11. EPC & Alliances PONTICELLI REASONS TYPES • Live up to clients' expectations in terms of • Security • Term • Quality • Cost • Economic intelligence • Each companiesAlliances • Specificities Common goal • Goals Temporary • Strategy ≠

12. EPC & Alliances PONTICELLI REASONS TYPES • Buying a service • Subcontracting More elaboratethanbuying • Provide ressources locally or a specifictechnical know-how • Made after the command with the clients

13. EPC & Alliances PONTICELLI REASONS TYPES Consortium An association of two or more, companies, organizations or governments with the objective of participating in a common activity GME (Groupement Momentané d’Entreprises) • Consortium between Ponticelli ( 40%) Saipem et and Desicon • For Total

14. EPC & Alliances PONTICELLI REASONS TYPES • Consortium • Share of the risks • No share of the ressources and benefits • Reduce the costs • Applytogether for the call for tenders • Mightbeinterdependent • Common responsibility • or • All responsibilitiesgiven to representative

15. EPC & Alliances PONTICELLI REASONS TYPES Joint Venture An entity formed between two or more parties To undertake economic activity together Equity • JV between Imer, Ponticelli and Suez, • for a Mitsubishi Heavy Industries

16. EPC & Alliances PONTICELLI REASONS TYPES • Joint Venture • Onlyexistsfiscally • No existence legally • Share of ressources, costs and margins • Temporary • In France: « Société En Participation »

17. EPC & Alliances PONTICELLI REASONS TYPES The Project Manager: Must plane, organize, and manage ressources Need technical knowledge and understand all the players • guarantee security • meet the deadline • ensure quality • control the costs

18. Thankyou Any Question?